Does Alloy Personal Training, LLC have the right to reject a proposed location for a Franchised Business?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you open your Franchised Business, we will:
- Consult with you on the location for your Franchised Business, which must be accepted by us. Your site must meet our criteria for population and/or median income in the surrounding area, size and cost of the facility that you select and other similar factors, including
our business judgment. We may reject your proposed location in our sole discretion. Our acceptance only means that the site meets our minimum requirements for a Franchised Business (Franchise Agreement – Section 5.A).
The Site Selection information included in this section apply to a site for your Franchised Business under a Franchise Agreement and each of the locations that you develop under your Development Agreement (as we will approve the location for future outlets using our then-current criteria, which may change over the years (the current criteria and process are noted below). Within 180 days after you sign the Franchise Agreement, you must locate a site for your Franchised Business, obtain our acceptance of the proposed site, and enter into a lease, sublease or purchase agreement for the approved site. You may engage with our preferred real estate vendors to assist you in the search of your Alloy site. You must submit to us the information and materials we may reasonably require to allow us to review the proposed site. We generally do not own the premises and lease it to you. The factors which we consider in accepting your location include the size and location of the premises, population in the immediate area and/or median household income, the lease terms for the premises, availability of parking and ease of access, types of businesses in close proximity to the premises, competition from similar businesses and other similar factors.
We will have 30 days after receiving all information we require concerning the proposed site to notify you whether the site is accepted or not. If we do not provide our specific acceptance of a location within this 30 day period, the location is deemed not accepted. Our acceptance only indicates that the site meets our minimum criteria for a Facility. If you are unable to obtain possession of a suitable site for your Franchised Business by lease, sublease or purchase agreement within six months after you sign the Franchise Agreement, we may provide you with an extension of this timeframe or we may terminate your Franchise Agreement. We utilize this same process for each Facility you are obligated to develop under an Area Development Agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 31–42)
What This Means (2025 FDD)
According to Alloy's 2025 Franchise Disclosure Document, Alloy Personal Training, LLC retains the right to reject a proposed location for a franchised business. Before a franchisee can open their Alloy Personal Training business, Alloy must accept the proposed location. Alloy's decision is based on criteria such as population and median income in the surrounding area, the size and cost of the facility, and other factors that Alloy deems relevant to their business judgment. Alloy has the sole discretion to reject a proposed location. Alloy's acceptance of a site only indicates that the location meets the minimum requirements for a franchised business.
Within 180 days of signing the Franchise Agreement, the franchisee must find a site, secure Alloy's approval, and enter into a lease, sublease, or purchase agreement for the approved site. Franchisees can engage Alloy's preferred real estate vendors to assist in the site search. The franchisee must submit all required information and materials to Alloy for review. Alloy generally does not own the premises and lease it to the franchisee.
Alloy will assess factors such as the size and location of the premises, local population and median household income, lease terms, parking availability, ease of access, nearby businesses, and competition. Alloy has 30 days to notify the franchisee of their decision after receiving all necessary information. Failure to provide specific acceptance within this 30-day period is considered a rejection. If a franchisee cannot secure a suitable site within six months of signing the Franchise Agreement, Alloy may grant an extension or terminate the agreement. This site selection process applies to each location developed under an Area Development Agreement.